A power of attorney is an important legal document that allows someone else to make your financial decisions. It gives an agent broad or limited authority to make legal decisions on behalf of the principal. It can be a useful tool if someone is ill or incapable/unavailable to make transactions.
But most people don’t want to create a power of attorney because they fear misuse. Several prevalent myths have contributed immensely in legitimising this fear. Here, we debunk five such popular misconceptions to help you know better and make an informed choice.
It is effective even after your death
Your power of attorney stays active only for as long as you are alive. No matter who, your agent can’t exercise any right after your passing away. All the capacities accorded to a person through your power of attorney become null and void after your death.
It authorizes medical decision
Contrary to popular belief, your agent cannot make medical decisions through your power of attorney. It only allows them to handle your financial decisions. However, some states have a provision of medical power of attorney or health care proxy that allows agents to take decisions related to your health on your behalf.
It can be used to change your will
Even though a power of attorney allows your agent to make financial and business decisions for you, only you can write or change your will. While drafting your power of attorney, you can decide all the authorities you want to give your agent.
You can’t make decisions anymore
A power of attorney is a document created for your convenience. It is meant to benefit you, not take away your independence. You can change or report any decisions made by your agent at any point by revoking your power of attorney. You can also make independent decisions apart from that of your agent, even when they have your power of attorney.
Young people do not need it
Mishaps come unannounced. They don’t acknowledge your age or gender. If you become incapable of making your financial decisions temporarily because of some unfortunate event, a power of attorney will make it easy for you to manage. But ensure that you give the attorney power only to someone you trust. So, even if you are young and healthy, having a power of attorney is a good idea.
About The Wotitzky Law Firm
If you are looking for a law firm to help you draft your power of attorney, let The Wotitzky Law Firm be your one-stop destination. One of the oldest law firms in Southwest Florida, we take great pride in guiding you through every step of the way. You can reach out to us at 941-639-2171 or by filling our online contact form to know more about our services.